the prices of food commodities across 11 Markets in Yobe and 8 markets in Borno.

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1 Fighting Hunger Worldwide IGERIA September 217-ISSUE 8 Borno and Yobe States Monitoring Report Highlights The price of maize has either decreased or stabilized in most markets in Yobe and some markets in Borno State when compared to the previous month or the past three months. Price stability or decline for local rice and peanuts is also reflective of the seasonal grain prospects or the arrival of newly harvested grains in local markets. Compared to last month, the price of red beans increased by 5%-19% in Abba Ganaram, Kasuwan Shanu, Tashan Bama, Monday market and Bullumkutu markets in Borno state, while in Yobe monitored markets the price of this staple decreased significantly by 2 percent due to the recent harvest the crop in that state. The price of imported rice also decreased or remained stable across all WFP monitored markets in Borno and Yobe. Abba Ganaram and Bullumkutu markets had the highest decrease of 1% to 14%. The prices of maize flour decreased across monitored markets in Yobe and Borno state, except in few markets in Damaturu, Kasuwan Shanu and Baga road markets where the month on month prices increased by 16.%, 7.5% and 6.7% respectively. Findings from WFP s large scale market assessment in August 217 show that markets in Borno, Yobe and Adamawa could handle a 25 percent increase in demand. However, most markets can neither handle a 5 percent or 1 percent increase in demand. Therefore, scale-up of CBT interventions should be gradual. Introduction The humanitarian community is responding to the needs of populations affected by the protracted conflict in north-eastern igeria by deploying a range of in-kind, cash or voucher transfer mechanisms. In view of this, WFP undertakes biweekly monitoring of food commodity prices in Borno and Yobe to give a synopsis of the s in prices of commodity on a monthto-month basis and s within 3 months. The bulletin gives a snapshot of the prices of food commodities across 11 s in Yobe and 8 markets in Borno. In Borno State, the monitored markets include Monday market, Abbaganaram, Budum, Kasuwan Shanu, Bullumkutu, Baga Road, Tashan Bama, Custom market. In Yobe State on the other hand, Damaturu, Bursari, Fune, Potiskum, Jakusko, Geidam, Yunusari, Yusufari, Bade, guru, angere markets are monitored (Figure 1). Borno and Yobe States Monthly Monitoring Report September ISSUE 8 1

2 Figure 1 price monitoring locations in Borno and Yobe States Yobe market locations Maiduguri (Borno) market locations Food basket monitoring The Survival Minimum Expenditure Basket (calculated for 2,1 kcal/per person) for a family of 5 people decreased by 3 percent from 17,5 aira in July 217 to 16, aira in September 217 in MMC and Jere, hence a in the transfer from G 17,5 to a value of 17, is recommended. In September, the SMEB decreased slightly by 2 percent in Damaturu and by 6 percent, in Bade while it increased slightly by 5 percent in Jakusko. Therefore, the transfer values these three locations is recommended to be G17,5, G, 22, and G 24,5 respectively. Table 1: Transfer value calculated for 5 household members in Maiduguri markets for one month HOUSEHOLD SIZE Food Item 5 gms/da gms/hh/d Kc/day/pp y/pp ay kg/hh/month Price/kg- aira (MPM) 75 22, Price/HH/month aira Rice 15 Millet Maize , ,75 Beans , ,938 Palm oil , Groundnut , Sugar , G/nut oil/veg Oil , ,122 Salt Onion , Total Cost food basket at 7%: 7% 54 gms/hh/month 1, ,1 24, ,47 16, , Per capita based on 7% transfer value Borno and Yobe States Monthly Monitoring Report September ISSUE 8 2

3 Table 2: Transfer value calculated for 5 household members in Yobe markets for one month Food Item HOUSEHOLD SIZE gms/da y/pp 5 Kc/day/pp gms/hh/d ay gms/hh/mo nth kg/hh/mont h Price/kg- aira (MPM) Price/HH/month - aira Rice , ,9 Millet. Maize , ,5 Beans , ,6 Palm oil , Groundnut , Sugar , G/nut oil/veg Oil , ,688 Salt Onion , Total 2,1 25,162.5 Cost food basket at 7%: 7% 1,47 17, Per capita based on 7% transfer value 3, Ex Rate Foreign ex reserves in igeria are seen to have improved more recently (Figure 2), the CB has sustained its direct intervention with introduction of bi-weekly foreign ex in the FOREX market, thereby strengthening the value of the igerian naira (G). The G traded on the parallel market at a relatively stronger rate throughout July and August 217, at about G 365. to US$1, further narrowing the gap between the official inter-bank ex rate and the parallel Bureau-De- Change (BDC) rate. The aira strengthened by 26 percent compared to its January 217 value (Figure 3). The gap between the official inter-bank ex rate and the parallel Bureau-de- Change rate has gradually continued to be narrowed in the last 3 months, with relative stability in the prices of imported staples, this is signifying a gradual recovery of the economy from recession. On-going early harvests have also impacted general food prices (Figure 3). Figure 2. igerian foreign reserves, global fuel price trends and inflation (January 215 to August 217) Figure 3. Evolution of the ex rate (G/ USD) & staple food prices (G/Kg) for January 215 to August 217 Borno and Yobe States Monthly Monitoring Report September ISSUE 8 3

4 Maiduguri s Monitoring Update September 217 Commodity Monday market Peanuts (1.25 Kg) 4.% -5.9% 4 6.7% 2.6% Maize flour (1.25 Kg) % 7.5% % 2.% Onion (Grams) % 15.% %.% Palm oil (Litre) % -5.9% % 4.% Red beans (1.25 Kg) % 5.3% 5 5.3% 5.3% Imported rice (1.25 Kg) % -4.2% 6 4.3% 4.3% Local rice (1.25 Kg) % -4.4% 435.%.% Vegetable oil (Litre) % -15.3% % -13.8% Sorghum (1.25 Kg) % -4.3% 225.% -8.2% Bullumkutu market Abba Ganaram Peanuts (Kg) 4 3.4% -5.9% % 16.4% Maize flour (Kg) % -31.% % 16.7% Onion (Grams) 1.%.% 9-1.% -1.% Palm oil (Litre) 4-4.8% 3.9% % 4.% Red beans (Kg) % 11.1% 475.% 13.1% Imported rice (Kg) % -16.7% %.% Local rice (Kg) % -7.7% % 4.7% Vegetable oil (Litre) % -5.9% % -19.% Sorghum (1.25 Kg) 2-9.1% -14.9% 22 1.% -8.3% Custom market Baga Road market Peanuts (Kg) 4.% -9.1% % 11.8% Maize flour (Kg) %.% % 22.9% Onion (Grams) % -32.% % 15.% Palm oil (Litre) % -5.6% % -2.4% Red beans (Kg) 49-2.% 6.5% % 1.5% Imported rice (Kg) % -6.8% % -4.2% Local rice (Kg) 45.%.% % 3.3% Vegetable oil (Litre) % -1.6% % -7.8% Sorghum (1.25 Kg) % -2.9% % -1.% Kasuwan Shanu Budum market Peanuts (Kg) %.% 4.%.% Maize flour (Kg) % 2.% % 21.1% Onion (Grams) % 15.% 1.%.% Palm oil (Litre) % -4.8% %.% Red beans (Kg) 49-2.% 16.7% 55 1.% 22.2% Imported rice (Kg) % -9.5% 6.% -4.% Local rice (Kg) % -2.4% 45.%.% Vegetable oil (Litre) % -9.1% % -11.1% Sorghum (1.25 Kg) % -4.3% % -8.% Price increase above normal price fluctuation Price fluctuation is considered normal if ormal Price Fluctuation Prices in aira price is within 5% for 1 month or Price decrease below normal price fluctuation within 1% for 3 months Tashan Bama Borno and Yobe States Monthly Monitoring Report September ISSUE 8 4

5 Yobe s Monitoring Update September 217 Commodity Potiskum Peanuts (1.25 Kg) % -17.6% 4 3.2% 6.7% Maize flour (1.25 Kg) % -33.3% 2-9.1%.% Onion (Grams) %.% 5-9.1%.% Palm oil (Litre) 6.% 2.% 65 4.% -7.1% Red beans (1.25 Kg) % -5.9% % -25.% Imported rice (1.25 Kg) % 4.8% 5-4.8% -9.1% Local rice (1.25 Kg) 425.%.% 4 6.7% -11.1% Vegetable oil (Litre) 6-7.7% -7.7% %.% Yam (1 tuber) % 8.% % -1.% guru Damaturu Peanuts (Kg) %.% %.% Maize flour (Kg) % 11.1% % -7.5% Onion (Grams) %.% 5-9.1%.% Palm oil (Litre) % 23.1% %.% Red beans (Kg) %.% % 6.7% Imported rice (Kg) % -8.3% 5-9.1% -9.1% Local rice (Kg) 4-3.6% -11.1% 4-2.4% -5.9% Vegetable oil (Litre) % 7.1% 7 3.7% 16.7% Yam (1 tuber) 45-4.% 38.5% % 14.% Geidam Yusufari Peanuts (Kg) %.% % -12.5% Maize flour (Kg) % -22.2% % -12.5% Onion (Grams) % -2.% % 25.% Palm oil (Litre) 7 5.3% 7.7% 6-4.% -14.3% Red beans (Kg) % -1.3% %.% Imported rice (Kg) % -9.1% 5-9.1% -9.1% Local rice (Kg) 4 3.2% -5.9% 4-3.6% -5.9% Vegetable oil (Litre) % -7.1% % -16.7% Yam (1 tuber) % 42.9% % 14.% Price increase above normal price fluctuation Price fluctuation is considered normal if ormal Price Fluctuation Prices in aira price is within 5% for 1 month or Price decrease below normal price fluctuation within 1% for 3 months Yunusari Borno and Yobe States Monthly Monitoring Report September ISSUE 8 5

6 Scalability of Cash Based Transfer (CBT) In most of the surveyed market traders are confident in their ability to respond to a slight increase in demand. However, major concerns arise from Konduga, Monguno, Geidam, Gulani and Jakusko. In these areas between 67 percent and 33 percent traders would not be able to face a 25 percent increase in demand. Thus, it would be important to investigate and monitor the supply condition of these areas. Figure 4. Capacity of markets to absorb an increase of demand by (25 percent) Only Jere and Kaga could meet a 5 percent increase of the demand whereas none of the LGAs can completely handle a 1 percent demand increase. With regard to these findings, scale-up of the CBT intervention should be partial and gradual. Figure 5. Capacity of markets to absorb an increase of demand by (5 percent) Figure 6. Capacity of markets to absorb an increase of demand by (1 percent) Conclusion As compared to last month the prices of local rice, maize flour and peanuts have decreased or remained stable across most WFP monitored markets in Borno and Yobe. This is similar to findings from the WFP/FEWSET market price monitoring in northern igeria, which revealed a reduction in the persistent elevated price levels for major staples. In some of the monitored markets Borno State, the price of maize increased, but to a lesser degree than has been the trend in previous months. While the arrival of newly harvested grains in local markets is likely to result in a reduction in the prices of key staples, there is need for close monitoring of the markets in Borno and Yobe as households are still facing food insecurity due to diminished purchasing power and livelihood activities. For further information please contact: VAM Team, WFP igeria, igeria.vam@wfp.org Borno and Yobe States Monthly Monitoring Report September ISSUE 8 6